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Press Releases U.S. Government

USTBC Comments on the Proposed FMS of Aircraft Spare Parts to Taiwan

Press Release:
The US-Taiwan Business Council Comments on the Proposed Foreign Military Sales of Aircraft Spare Parts to Taiwan

(Arlington, Virginia, December 7, 2022)

The US-Taiwan Business Council today welcomed the announcement of two possible Foreign Military Sales (FMS) to Taiwan, supplying aircraft standard and nonstandard spare parts and related equipment at an estimated total cost of US$428 million. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sales on December 6, 2022.

The published Congressional Notifications (transmittal numbers 22-55 and 22-56) are for the expansion of the Cooperative Logistics Supply Support Arrangement for stock replenishment supply of aircraft standard and non-standard spare parts and related equipment. These two notifications include consumables, accessories, and repair and replacement support for the F-16, C-130, Indigenous Defense Fighter (IDF), and all other Taiwan aircraft and systems or subsystems of U.S. origin, as well as other related elements of logistics and program support.

Council President Rupert Hammond-Chambers commented on today’s sale, “We welcome the news that the U.S. government continues to support the sustainment of Taiwan’s air power. A modern, well-equipped air force is required to handle an all-phases approach to Taiwan’s national defense. That includes the parts and sustainability required to maintain operational rates commensurate with the threat from China’s People’s Liberation Army Air Force.

The PLAAF’s grey zone activities represent a daily challenge to Taiwan’s sovereignty and national integrity. The upgrade program for Taiwan’s legacy F-16s is proceeding well, and in 2023 we can expect to see the first of Taiwan’s new F-16s start to arrive on the island. By 2026, Taiwan will have the largest and most modern fleet of F-16s in the Asia-Pacific – a capability well worth the investment and support. This too is true for Taiwan’s fleet of C-130s required for logistical support. Taiwan’s budget priorities should continue to ensure that its legacy equipment is well maintained, including through the procurement of parts.

Hammond-Chambers added, “USTBC has been consistent in noting that the Biden Administration is focused on munitions and sustainment, and these congressional notifications are part of those types of programs. As we move into 2023, we can expect more arms sales in these two areas.

Source: See the DSCA website at https://www.dsca.mil/press-media/major-arms-sales

Additional Data:

For more details on Taiwan arms sales, please visit our dedicated defense website at www.ustaiwandefense.com. The post “Taiwan Arms Sales Notified to Congress 1990-2022” contains charts showing a summary of arms sales data by year, along with a link to the raw data compiled by the Council from DSCA and other sources.

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Past Events

October 2-4, 2022 – US-Taiwan Defense Industry Conference 2022

October 2-4, 2022 – US-Taiwan Defense Industry Conference 2022

Event: US-Taiwan Defense Industry Conference 2022
October 2-4, 2022
Richmond, Virginia

www.taiwandefenseconference.com

The US-Taiwan Defense Industry Conference 2022 will be held October 2-4, 2022 at the OMNI Richmond Hotel in Richmond, Virginia. This event will be held in person only. This will be the 21st annual event in a series of ongoing conferences addressing the future of U.S. defense cooperation with Taiwan, the defense procurement process, and Taiwan’s defense and national security needs.

The conference will open with a discussion on the evolving threat in the Taiwan Strait. The first session will examine the threat to Taiwan in light of the Russia-Ukraine war, and discuss any potential lessons that could be learned by China, Taiwan, and the United States.

The second session will consider the growth and evolution of Taiwan’s strategic thinking, to improve U.S. industry understanding of the current trajectory for Taiwan defense planning in the short, medium, and long term. The third session will discuss non-traditional engagement efforts between the U.S. and Taiwan – training, logistics, sustainment, industrial cooperation, etc. – with a particular focus on industry collaboration and how such undertakings can support both Taiwan and U.S. national security goals.

The fourth session will focus on deterrence and resilience, discussing Phase Zero activities and measures that could help improve Taiwan’s defensive posture, and panelists will discuss ways that bilateral cooperation could help improve deterrence and build Taiwan’s resilience. The fifth and final session will continue the discussion on deterrence and resilience, taking a regional approach to a potential conflict in the Taiwan Strait by examining the role that other U.S. partners and allies such as Japan and Australia could play in ongoing deterrence efforts.

The US-Taiwan Defense Industry Conference website is at www.taiwandefenseconference.com

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Press Releases U.S. Government

USTBC Comments on the Proposed FMS of Contractor Technical Assistance Support to Taiwan

Press Release:
The US-Taiwan Business Council Comments on the Proposed Foreign Military Sale of Contractor Technical Assistance Support to Taiwan

(Arlington, Virginia, July 15, 2022)

The US-Taiwan Business Council today welcomed the announcement of a possible Foreign Military Sale to Taiwan of Blanket Order Contractor Technical Assistance Support, at an estimated cost of US$108 million. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sale on July 15, 2022.

The published Congressional Notification (transmittal number 22-31) is for contractor technical assistance support consisting of unclassified spare and repair parts and assembly for tanks and combat vehicles. It also covers technical assistance, technical and logistical support, and other related elements.

The US-Taiwan Business Council acknowledges the need for sustainment of Taiwan’s military. This sale will help Taiwan maintain its vehicles, small arms, combat weapon systems, and logistical support items.

Council President Rupert Hammond-Chambers said, “As the US-Taiwan Business Council has previously noted, the Biden Administration’s security assistance policy through 2025 will focus on sustainment and munitions. Force modernization of Taiwan’s armed forces is no longer a priority. We expect to soon learn more about the new limits of U.S. security assistance to Taiwan after the June Monterey Talks and Special Channel talks in Washington, D.C. and Annapolis, Maryland.

Hammond-Chambers added, “More information will allow us to better predict where U.S. policy will start to open up critical gaps in Taiwan’s all-phases approach to the defense of the island. The PLA will naturally focus on these emerging vulnerabilities, as they adapt to the shortcomings of U.S. policy. The US-Taiwan Business Council again calls on the Biden Administration to provide strategic clarity on where U.S. forces will fill gaps in Taiwan’s defense brought on by these changes to U.S. policy.

Source: See the DSCA website at https://www.dsca.mil/press-media/major-arms-sales

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Press Releases U.S. Government

USTBC Comments on the Proposed FMS of Naval Spare and Repair Parts to Taiwan

Press Release:
The US-Taiwan Business Council Comments on the Proposed Foreign Military Sale of Naval Spare and Repair Parts to Taiwan

(Arlington, Virginia, June 9, 2022)

The US-Taiwan Business Council today welcomed the announcement of a possible Foreign Military Sale to Taiwan of naval spare and repair parts, at an estimated cost of US$120 million. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sale on June 8, 2022.

The published Congressional Notification (transmittal number 22-22) is for spare and repair parts for ships and ship systems, technical assistance, technical and logistical support, and other related elements of logistics support. The notification indicated that the equipment will be sourced from approved U.S. Navy vendors and/or U.S. Navy stock.

The US-Taiwan Business Council acknowledges the need for sustainment of Taiwan’s military. The upkeep of the Taiwan armed forces is an essential aspect of Taiwan’s overall force posture, and supports its efforts to ensure that its military operational rates are high.

Council President Rupert Hammond-Chambers said, “As the Biden Administration undertakes the most significant narrowing of U.S.-Taiwan security assistance since 1979, these types of notifications covering sustainment efforts are the most likely over the next 18-24 months. There appears to now be little to no U.S. support for substantial Taiwan force modernization efforts, so we should expect to see mostly sustainment and munitions programs through the remainder of President Biden’s term (or terms) in office.

Hammond-Chambers added, “One significant impact this approach will have is to constrain force modernization for entire areas of Taiwan’s military capability. We are likely to see the loss of infrastructure, hollowing out of operational experience, and the loss of decades of expertise. Once lost, that expertise will not return to the Taiwan military. This creates new vulnerabilities for the Chinese military to exploit. Far from improving Taiwan security, as time progresses this new directed approach will supply the PLA with emerging areas of military weakness, heightening – not lessening – the likelihood of attack.

Source: See the DSCA website at https://www.dsca.mil/press-media/major-arms-sales

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Press Releases U.S. Government

USTBC Comments on the Proposed FMS of Contractor Technical Assistance for Taiwan’s Patriot Air Defense System

Press Release:
The US-Taiwan Business Council Comments on the Proposed Foreign Military Sale of Contractor Technical Assistance for Taiwan’s Patriot Air Defense System

(Arlington, Virginia, April 6, 2022)

The US-Taiwan Business Council today welcomed the announcement of a possible Foreign Military Sale to Taiwan of Contractor Technical Assistance and related maintenance and sustainment articles and services for the Patriot Air Defense System, at an estimated cost of US$95 million. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sale on April 5, 2022.

The published Congressional Notification (transmittal number 22-16) is for support of the Patriot Air Defense System in Taiwan, and helps underpin Taiwan’s efforts to modernize its armed forces and to maintain a credible defensive capability. It includes Contractor Technical Assistance support consisting of training, planning, fielding, deployment, operation, maintenance, and sustainment of the Patriot Air Defense System, associated equipment, and logistics support elements. It also includes Patriot Ground Support Equipment, spare parts, and consumables.

Council President Rupert Hammond-Chambers said: “The sustainment of Taiwan’s existing weapons systems is an essential commitment by its armed forces to maintain high operational rates for its legacy gear.” “The normalized and regularized process of assessing all requested weapons systems for Taiwan’s use must remain a top priority for the Biden Administration. That should entail the acceptance from Taiwan of Letters of Request (LoRs), so that a full inter-agency assessment – that includes the uniformed services – can ascertain the utility of the request.”

Source: See the DSCA website at https://www.dsca.mil/press-media/major-arms-sales

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Press Releases U.S. Government

The US-Taiwan Business Council Comments on the July 8, 2019 U.S. Arms Sales to Taiwan of M1A2 Abrams MBTs & Stinger Missiles

The US-Taiwan Business Council today welcomed the announcement of two possible Foreign Military Sales of M1A2 Abrams Main Battle Tanks (MBT), Stinger Missiles, and related equipment and support to Taiwan for a total estimated value of US$2 billion. The Defense Security Cooperation Agency (DSCA) delivered the required certifications notifying Congress of the proposed Taiwan arms sales on July 8, 2019.

The published Congressional Notifications (transmittal numbers 19-21 and 19-22) are for a total value of approximately US$2 billion, with the Stinger Missiles at an estimated cost of US$223.56 million.

The first notification includes 108 M1A2T Abrams Tanks; 14 M88A2 HERCULES Vehicles; 16 M1070A1 Heavy Equipment Transporters (HET); 338 M2 Chrysler Mount and M240 Machine Guns; a variety of munitions and other equipment and services; as well as program logistics and additional support. The second notification includes 250 Block I -92F MANPAD Stinger anti-aircraft missiles and 4 Block I -92F MANPAD Stinger Fly-to-Buy missiles, along with related equipment and support.

The 108 M1A2 Abrams MBTs appear destined for the 6th Army Corps’ two armored battalions stationed in northern Taiwan. The new tanks will replace some of Taiwan’s existing M60A3 Patton and CM-11 Brave Tiger tanks in service with the Taiwan Army, as part of a refresh of some of its older existing equipment.

The US-Taiwan Business Council is encouraged by these Congressional notifications. Despite initial concerns over the efficiency of the M1A2 Abrams platform on Taiwan’s coastal wetlands and in its mountains, the U.S. has provided the Taiwan military with the equipment it has requested, trusting to Taiwan war planners and military strategists to make their own determination of Taiwan’s needs.

Council President Rupert Hammond-Chambers said that “these tanks and missiles will provide the Taiwan army with a modern capability to deter and complicate the operational planning of the People’s Liberation Army (PLA) forces that coerce and threaten Taiwan. They will also offer new opportunities to engage in cooperation with the United States in both the deployment and operations phases, and to maximize the effectiveness of the equipment.

Hammond-Chambers went on to say, “the Trump Administration recognizes that even at a time of higher tensions in the U.S.-China relationship, the U.S. providing material support for Taiwan’s ongoing force modernization should not be predicated on U.S.-China priorities. The Administration has made a commitment to regularize and normalize the arms sales process to Taiwan, and today’s announcement is a testament to that commitment. It is a sound and responsible policy that will maximize the deterrent nature of a modern, well-equipped Taiwan military capable of complicating and deterring any actions by the PLA.

http://www.us-taiwan.org/pressrelease/2019july08congressionalnotificationsarmssalestotaiwan.pdf

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U.S. Government

September 24, 2018 – U.S. Foreign Military Sales Order (FMSO) II to Taiwan

On September 24, 2018 the Defense Security Cooperation Agency (DSCA) made the following statement:

The State Department has made a determination approving a possible Foreign Military Sales Order (FMSO) II to provide funds for blanket order requisitions to the Taipei Economic and Cultural Representative Office in the United States (TECRO) for an estimated cost of $330 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today. TECRO has requested a Foreign Military Sales Order (FMSO) II to provide funds for blanket order requisitions, under a Cooperative Logistics Supply Support Arrangement for stock replenishment supply of standard spare parts, and repair/replace of spare parts in support of the F-16, C-130, F-5, Indigenous Defense Fighter (IDF), all other aircraft systems and subsystems, and other related elements of logistics and program support. The total estimated program cost is $330 million.

This proposed sale is consistent with U.S. law and policy as expressed in Public Law 96-8.This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security and defensive capability of the recipient, which has been and continues to be an important force for political stability, military balance, and economic progress in the region. The proposed sale of spare and repair parts is required to maintain the recipient’s defensive and transport aerial fleet. The recipient has been operating these fleets since 1996 and will have no difficulty absorbing this equipment and support into its armed forces.

The proposed sale of this equipment and support will not alter the basic military balance in the region. There are no principal contractors involved with this potential sale. There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will not require the permanent assignment of any U.S. Government or contractor representatives. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale is required by law and does not mean the sale has been concluded.

All questions regarding this proposed Foreign Military Sale should be directed to the State Department’s Bureau of Political Military Affairs, Office of Congressional and Public Affairs, pm-cpa@state.gov.

The original news release is available on the DSCA website:
http://www.dsca.mil/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-tecro-foreign